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Tax take E365m ahead to end August

Tuesday, September 04 16:45:22

Exchequer figures out this afternoon show that the Revenue took in E365m more in the eight months to the end of August than had previously been forecast with much of the gain coming from a much better than expected corporate tax take.

At end-August three of the "big four" sources of tax revenue are ahead of profile, the figures show.

In year-on-year terms, taxes are up almost E1.6 billion or 7.7pc.

Adjusting for the impact of delayed corporation tax receipts and the PRSI to income tax reclassification issue, the year-on-year growth rate is lower, though still a robust 5.2pc.

Income tax is E102 million or 1.1pc ahead of target cumulatively although receipts were below target in August for the second consecutive month.

Quarter 4 is a very significant period for income tax, given the concentration of returns from the self-employed, and receipts in that period will be crucial in determining the overall outturn for the year as a whole, the Department of Finance said.

VAT is E82 million (1.2pc) ahead of target cumulatively at end-August and on a year-on-year basis receipts are up E207 million (3.1pc) on the same period last year.

Corporation tax continues to perform above expectations and after eight months of the year is E310 million (17pc) ahead of profile.

The Department said that it is important to acknowledge the significance of the latter part of the year in terms of corporation tax collection. E2 billion is profiled for collection in the three month period September - November and this will have a considerable role in determining the end-year outturn.

However, excise duties - the fourth of the "big four" taxes - weakened in August and are now E116 million 3.8pc below profile cumulatively and 1.5pc lower year-on-year.

On the spending side, net voted current expenditure, at E28 billion, is E437 million (1.6pc) higher than planned.

Net voted capital expenditure at just under E1.6 billion is E120 million (7.1pc) below profile and E415 million (20.9pc) down year-on-year.